How will the Recovery Act help small businesses overall?
Michael Stamler: One of the biggest hurdles small businesses have faced over the last several months is the lack of access to capital that resulted from the “credit crunch.” Through the Recovery Act, the federal government guarantees certain SBA loans up to 90%, to help restore that access by making it easier for lenders to offer more small business loans, reduce lending costs, and provide assistance for businesses owners who are facing immediate financial hardship. The Act also established what’s being called the “America’s Recovery Capital, or ARC loan program, that offers viable small businesses that need help making payments on an existing loan for up to six months the option of taking out deferred-payment loans of up to $35,000. These loans are fully backed by the SBA. The idea is to give small businesses some temporary financial relief to keep their doors open and get their cash flow back on track so they can maintain existing jobs and ultimately create new jobs. Qualifying busin
